4,121 ETH Worth $9M Was Just Burned
Portfolio Pulse from Benzinga Insights
On Monday, 4,121.46 Ether (ETH) worth approximately $9M was burned, permanently removing it from circulation. This action is part of the Ethereum blockchain's EIP-1159 upgrade, which introduced a variable base fee for transactions that is burned. The Ethereum network is currently issuing new Ether at a 4% annual rate, expected to decrease with the Ethereum 2.0 upgrade, potentially making ETH a deflationary currency. The net annualized issuance rate for Ether was -2.66% yesterday.
February 06, 2024 | 6:00 pm
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4,121.46 Ether worth $9M was burned, potentially leading ETH towards becoming a deflationary currency due to the EIP-1159 upgrade and anticipated changes with Ethereum 2.0.
The burning of Ether reduces the overall supply, which, combined with the EIP-1159 upgrade and the anticipated decrease in new Ether issuance with Ethereum 2.0, could increase the scarcity and potentially the value of ETH in the short term. The net annualized issuance rate being negative further supports the potential for ETH to become a deflationary asset.
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